The chef had accused his father-in-law, Chris Hutcheson, of hacking into private emails and wrongfully taking €1.69 from his restaurant business to fund his a string of mistressses.

Mr Hutcheson denied the claims, and sued his son-in-law and business partner for unfair dismissal and unpaid wages.

Tana, Mr Ramsey's wife, sided with her husband after learning her father had raised a second, secret family for 30 years.

The two men have now reached a settlement, reported to be worth €2.4m including a payment for a 30pc share of Gordon Ramsay Holdings.

In a statement Ramsay's publicist, Freud Communications, said: "Gordon Ramsay and Gordon Ramsay Holdings have reached a settlement with Chris Hutcheson and other members of the Hutcheson family.

"The terms of the settlement are confidential but we can confirm that Chris Hutcheson is no longer a director or shareholder of Gordon Ramsay Holdings and all civil litigation and employment tribunal claims brought by each of the two parties and other family members have been withdrawn."

Mr Ramsay sacked his father-in-law as chief executive of his company 16 months ago. Mr Hutcheson said the chef was a "monster". Mr Ramsay retaliated with a public letter, saying he had employed private detectives to investigate his father-in-law and his "very complex life".

In May last year the High Court lifted an injunction taken out by Mr Hutcheson, revealing details of his extra-marital affairs and the second, secret family of two children and a mistress.

In December Mr Ramsay was awarded €302,000 costs after a judge ruled that Mr Hutcheson and two of his children were liable for breach of confidence after hacking into personal emails and family computers.